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In a recent Press Release published on November 13, 2022, by the U.S. House of Representatives, Congressman Brad Sherman, Chairman of the Subcommittee on Investor Protection and Capital Markets, made a statement on the FTX collapse.
Mr. Brad Sherman’s Statement on FTX Collapse
The well-known crypto skeptic stated that “The sudden collapse this week of one of the largest cryptocurrency firms in the world has been a dramatic demonstration of both the inherent risks of digital assets and the critical weaknesses in the industry that has grown up around them.”
Mr. Sherman added that the failure of FTX has now become an evident that represents tens of billions of dollars in losses. While there is no information of how much the total financial harm caused to consumers and investors in the U.S. and around the world.
He pointed that now it has become crucial that “we develop a clear understanding of the chain of events and management failures that led to this collapse.” And he fully supports the efforts of U.S. regulators and Law enforcement to investigate this situation and make sure those responsible are held accountable. Mr. Sherman thinks that now it is becoming more important than ever that the SEC take decisive action to put an end to the regulatory gray area in which the crypto industry has operated.
To examine the options for federal legislation, he further noted that “In the coming weeks I also plan to work with my colleagues in Congress to examine options for federal legislation. To date, efforts by billionaire crypto bros to deter meaningful legislation by flooding Washington with millions of dollars in campaign contributions and lobbying spending have been effective.”
He further highlighted that “A great deal of attention has been given to former FTX CEO, Sam Bankman-Fried, political donations to Democrats; most of that was spent in primaries (mostly unsuccessfully), not to help Democrats beat Republicans.”
On the other hand, Ryan Salame, the co-CEO of Bahamas based FTX Digital Markets, also donated over $23 Million to Republican candidates and campaign groups in 2022.
In recent times, it has been noted that the Former U.S. Treasury Secretary, Larry Summers, compared the FTX collapse with the Enron Scandal.
Kevin O’Leary, Chairman of O’Shares and Beanstox, also tweeted on November 12, 2022, and pointed out that investment in FTX was one of the biggest mistakes. He wrote “As an investor, you will never get it right every time. You will make some mistakes. Sometimes big ones like FTX. The key is to learn from them so you don’t repeat. Over time experience will get you to a place where you make more good investments than bad.”
He also added that the Crypto bottom is in.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
